TOMI Environmental Solutions, Inc.

Good day, ladies and gentlemen, and welcome to the TOME Environmental Solutions Incorporated Third Quarter 2024 Financial Results Call. At this time, all participants are on a listen-only mode, and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Rosalind Christian from IMS Investor Relations. Ma'am, the floor is yours.

Thank you. And thank you for joining us today for the TOME Environmental Solutions Investor Update conference call. On today's call is Tomi's CEO and Chairman of the Board, Dr. Haldan Shane, Tomi's COO, EJ Shane, and Tomi's CFO, Joe Rebecca. Dr. Shane will provide an overview of recent business highlights, EJ will report on future plans, Joe will provide the financials, and all will be available for the Q&A. A telephone replay of today's call will be available through November 6, 2024. the details of which are included in the company's press release dated October 24, 2024. A webcast replay will also be available at Tomei's website, www.steromist.com. Please note that information contained within this presentation is relevant only to the day in which it was recorded, October 30, 2024, and you are therefore advised that time-sensitive information may no longer be accurate at the time of any replay. Certain written and oral statements made by management of TOME may constitute forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements should be evaluated in light of important risk factors that could cause our actual results to differ materially from our anticipated results. The information provided in this conference call is based upon the facts and circumstances known at this time. The company undertakes no obligation to update these forward-looking statements after the date of this call. In addition, Tomy will discuss certain non-GAAP financial measures during this call. The company uses non-GAAP measures because it believes they provide useful information about operating performance that should be considered by investors in conjunction with the GAAP measures. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release dated October 30, 2024. I will now turn the call over to Tomi's chairman and CEO, Dr. Howden Shane.

Thank you, Roz, and good afternoon, everyone. Thank you for joining us today to discuss Tomi Environmental Solutions third quarter 2024 financial results. With me today is our CFO, Joe Resepka, who will provide a detailed financial overview, followed by EJ Shane, our COO, with the company's update on its strategic direction and growth potential. I am pleased to report that Tomi achieved another milestone, making our second consecutive profitable quarter for the 2024 calendar year. This performance reflects higher revenue, improved gross margins, and carefully executed reductions in operating expense. In addition, we achieved positive cash flow this quarter, driven by stronger accounts receivable turnover and tighter control of our outgoing cash through disciplined management of expenditures. Our momentum continues as we broaden our customer base and secure new strategic agreements and partnerships. These achievements are a direct result of the resilience and commitment of our team, the support of our long-term partners, and the strength of our business model. Our revenue for the quarter was approximately $2.5 million, representing a 73% increase compared to the third quarter of the prior year. This growth was primarily driven by strong demand for our mobile equipment, which has increased by 90% in 2024 compared to 2023. And our IHP service revenue, which recognized revenues of approximately 650,000, making a record for the division's quarterly performance, surpassing historical averages of approximately 250,000 per quarter. We continue to see strong international sales for this year. The first nine months of 2024 shows international sales growth at 82% when compared to 2023. And BIT solution sales have also increased by 13% year to date. While our partnership with EMAQ announced in the second quarter, continues to grow, effectively leveraging combined strengths and resources to accelerate business development and expand opportunities. The third quarter delivered support to key clients, such as Pfizer and Thermo Fisher Scientific, while successfully onboarding new customers, including Integra Life Sciences, Curia, and multiple smaller engagements within the food safety sector. These new relationships are expected to drive sustained growth through both capital equipment sales and recurring service contracts. The addition of these valued clients further reinforces IHP's leadership in advanced decontamination solutions, extending our presence across the life science industry and other markets. We remain on track with the time for our ongoing custom integrations. The California-based company, contracted in February, is nearing acceptance and will soon be operational. Additionally, the system designed for the global leader in advanced laboratory services, contracted in June, has been accepted and is now in the manufacturing phase. Tomi is making significant strides into the consumer healthcare market through partnerships with industry leaders, such as Edgewell Personal Care and Reckitt Benziker Group PLC. These collaborations highlight the versatility of Sturmus technology across multiple industries, enabling us to unlock new markets while continuing to support our core segments. Looking ahead, We remain focused on accelerating international growth, launching new products and programs, and carefully managing expenses. This disciplined approach has strengthened our performance this quarter, and we remain committed to delivering sustainable, organic growth, and profitability moving forward. I'll now turn the call over to Joe.